When the greed, recklessness, and illegal behavior on Wall Street drove this country into the deepest recession since the 1930s, the largest financial institutions in the United States took every advantage of being American. They just loved their country - and the willingness of the American people to provide them with the largest bailout in world history. In 2008, Congress approved a $700 billion gift to Wall Street. Another $16 trillion in virtually zero interest loans and other financial assistance came from the Federal Reserve. America. What a great country.

But just two years later, as soon as these giant financial institutions started making record-breaking profits again, they suddenly lost their love for their native country. At a time when the nation was suffering from a huge deficit, largely created by the recession that Wall Street caused, the major financial institutions did everything they could to avoid paying American taxes by establishing shell corporations in the Cayman Islands and other tax havens.

In 2010, Bank of America set up more than 200 subsidiaries in the Cayman Islands (which has a corporate tax rate of 0.0 percent) to avoid paying U.S. taxes. It worked. Not only did Bank of America pay nothing in federal income taxes, but it received a rebate from the IRS worth $1.9 billion that year. They are not alone. In 2010, JP Morgan Chase operated 83 subsidiaries incorporated in offshore tax havens to avoid paying some $4.9 billion in U.S. taxes. That same year Goldman Sachs operated 39 subsidiaries in offshore tax havens to avoid an estimated $3.3 billion in U.S. taxes. Citigroup has paid no federal income taxes for the last four years after receiving a total of $2.5 trillion in financial assistance from the Federal Reserve during the financial crisis.

On and on it goes. Wall Street banks and large companies love America when they need corporate welfare. But when it comes to paying American taxes or American wages, they want nothing to do with this country. That has got to change.

Offshore tax abuse is not just limited to Wall Street. Each and every year corporations and the wealthy are avoiding more than $100 billion in U.S. taxes by sheltering their income offshore.

Pharmaceutical companies like Eli Lilly and Pfizer have fought to make it illegal for the American people to buy cheaper prescription drugs from Canada and Europe. But, during tax season, Eli Lilly and Pfizer shift drug patents and profits to the Netherlands and other offshore tax havens to avoid paying U.S. taxes.

Apple wants all of the advantages of being an American company, but it doesn't want to pay American taxes or American wages. It creates the iPad, the iPhone, the iPod, and iTunes in the United States, but manufactures most of its products in China so it doesn't have to pay American wages. Then it shifts most of its profits to Ireland, Luxembourg, the British Virgin Islands and other tax havens to avoid paying U.S. taxes. Without such maneuvers, Apple's federal tax bill in the United States would have been $2.4 billion higher in 2011.

Offshore tax schemes have become so absurd that one five-story office building in the Cayman Islands is now the "home" to more than 18,000 corporations.

This tax avoidance does not just reduce the revenue that we need to pay for education, healthcare, roads, and environmental protection, it is also costing us millions of American jobs. Today, companies are using these same tax schemes to lower their tax bills by shipping American jobs and factories abroad. These tax breaks have contributed to the loss of more than 5 million U.S. manufacturing jobs and the closure of more than 56,000 factories since 2000. That also has got to change.

At a time when we have a $16.5 trillion national debt; at a time when roughly one-quarter of the largest corporations in America are paying no federal income taxes; and at a time when corporate profits are at an all-time high; it is past time for Wall Street and corporate America to pay their fair share.

That's what the Corporate Tax Dodging Prevention Act (S.250) that I have introduced with Rep. Jan Schakowsky (D-Ill.) is all about.

This legislation will stop profitable Wall Street banks and corporations from sheltering profits in the Cayman Islands and other tax havens to avoid paying U.S. taxes. It will also stop rewarding companies that ship jobs and factories overseas with tax breaks. The Joint Committee on Taxation has estimated in the past that the provisions in this bill will raise more than $590 billion in revenue over the next decade.

As Congress debates deficit reduction, it is clear that we must raise significant new revenue. At 15.8 percent of GDP, federal revenue is at almost the lowest point in 60 years. Our Republican colleagues want to balance the budget on the backs of the elderly, the sick, the children, the veterans and the most vulnerable by making massive cuts. At a time when the middle class already is disappearing, that is not only a grossly immoral position, it is bad economics.

We have a much better idea. Wall Street and the largest corporations in the country must begin to pay their fair share of taxes. They must not be able to continue hiding their profits offshore and shipping American jobs overseas to avoid taxes.

Here's the simple truth. You can't be an American company only when you want a massive bailout from the American people. You have also got to be an American company, and pay your fair share of taxes, as we struggle with the deficit and adequate funding for the needs of the American people. If Wall Street and corporate America don't agree, the next time they need a bailout let them go to the Cayman Islands, let them go to Bermuda, let them go to the Bahamas and let them ask those countries for corporate welfare.

The guy has a point........

Act of God

02-13-2013 07:43 AM

Those companies would probably just leave America though.

'busa

02-13-2013 08:50 AM

:clap:

Quote:

Originally Posted by Act of God
(Post 15157669)

Those companies would probably just leave America though.

They can GTFO. See if Dubai will bail them out.

Act of God

02-13-2013 09:12 AM

Yeah that should help our economy!

evolved

02-13-2013 09:21 AM

Quote:

Originally Posted by Act of God
(Post 15157669)

Those companies would probably just leave America though.

+1

There is a definite need for corporate tax reform.....hiking the rates on them is not the answer since we already have some of the highest rates.

Lair

02-13-2013 09:28 AM

Let 'em GTFO and see if they can earn all that profit in the Caymans.

bimmerfan08

02-13-2013 09:41 AM

Quote:

Originally Posted by evolved
(Post 15157835)

+1

There is a definite need for corporate tax reform.....hiking the rates on them is not the answer since we already have some of the highest rates.

I was waiting for this. So many people want to attack corporations in this country and make them pay.

'busa

02-13-2013 10:13 AM

Quote:

Originally Posted by evolved
(Post 15157835)

+1

There is a definite need for corporate tax reform.....hiking the rates on them is not the answer since we already have some of the highest rates.

That's a myth. Yes, in theory, they are, but the effective tax rate is much lower. The CBO puts it at 12.1% in their latest estimate: According to the Wall Street Journalís recent study of Congressional Budget Office numbers, corporations are paying an effective rate of 12.1%, the lowest in at least 40 years.

That's a myth. Yes, in theory, they are, but the effective tax rate is much lower. The CBO puts it at 12.1% in their latest estimate: According to the Wall Street Journalís recent study of Congressional Budget Office numbers, corporations are paying an effective rate of 12.1%, the lowest in at least 40 years.

When the greed, recklessness, and illegal behavior on Wall Street drove this country into the deepest recession since the 1930s, the largest financial institutions in the United States took every advantage of being American. They just loved their country - and the willingness of the American people to provide them with the largest bailout in world history. In 2008, Congress approved a $700 billion gift to Wall Street. Another $16 trillion in virtually zero interest loans and other financial assistance came from the Federal Reserve. America. What a great country.

The lending that took place on wall street only occurred AFTER the government mandated they do so. Big government morons just overlook that fact in favor of... MORE GOVERNMENT

evolved

02-13-2013 10:33 AM

Quote:

Originally Posted by 2000_328CI
(Post 15157979)

Can write off the entire article based on the first line alone :

The lending that took place on wall street only occurred AFTER the government mandated they do so. Big government morons just overlook that fact in favor of... MORE GOVERNMENT

Gross generalization is gross. There are so many moving pieces to what happened and to blame it solely on the government is hilariously obtuse.

Act of God

02-13-2013 10:52 AM

Quote:

Originally Posted by 'busa
(Post 15157951)

That's a myth. Yes, in theory, they are, but the effective tax rate is much lower. The CBO puts it at 12.1% in their latest estimate: According to the Wall Street Journalís recent study of Congressional Budget Office numbers, corporations are paying an effective rate of 12.1%, the lowest in at least 40 years.

First of all 40 years is nothing. Second of all, evolved was talking about our rates compared to the rest of the world. We can have the lowest rates WE'VE had, but if we're still at/near the top what's the difference?

badfast

02-13-2013 10:54 AM

Quote:

Originally Posted by Act of God
(Post 15158055)

First of all 40 years is nothing. Second of all, evolved was talking about our rates compared to the rest of the world. We can have the lowest rates WE'VE had, but if we're still at/near the top what's the difference?

But we are not at the top compared to the rest of the world. We sit near the bottom. Read foreign Affairs Volume 91 #5 America the undertaxed by Andrea Campbell.

Act of God

02-13-2013 10:57 AM

Quote:

Originally Posted by badfast
(Post 15158069)

But we are not at the top compared to the rest of the world. We sit near the bottom. Read foreign Affairs Volume 91 #5 America the undertaxed by Andrea Campbell.

That is an absolutely false statement. :facepalm:

That article is about the taxation of Americans as a whole. We're talking about corporations here. Secondly, Ms. Campbell's graph about tax revenues as a % of GDP is retarded as we are not a socialist or communist country (yet). Who gives an eff what our tax revenue % is compared to other countries?

As for Ms. Campbell, you know she's an out and about Obama cheerleader right?

Quote:

The Future of U.S. Health CareAndrea Louise Campbell

The Affordable Care Act is a monumental accomplishment. Thanks to its expansion of health care coverage and new regulations, tens of millions of Americans will feel more secure, knowing that they can seek medical attention when they need it and that they will be protected from the insurance industry's most egregious practices.

'busa

02-13-2013 10:59 AM

Quote:

Originally Posted by Act of God
(Post 15158055)

First of all 40 years is nothing. Second of all, evolved was talking about our rates compared to the rest of the world. We can have the lowest rates WE'VE had, but if we're still at/near the top what's the difference?

Nothing you posted here makes any sense.

What do you mean 40 years is nothing? Would you like them to be lowest in the history of the world? What are you talking about?

As for your second, did you read my post at all before you clicked on "quote" and replied?

Act of God

02-13-2013 11:02 AM

Quote:

Originally Posted by 'busa
(Post 15158085)

Nothing you posted here makes any sense.

What do you mean 40 years is nothing? Would you like them to be lowest in the history of the world? What are you talking about?

As for your second, did you read my post at all before you clicked on "quote" and replied?

of course I read it, you said that there is an alleged effective rate of 12.1% which is the allegedly the lowest corporate tax rate in 40 years. I said it does not matter, as your article doesn't seem to compare effective rates of every other country.

Also, the article does not differentiate between effective rates for domestic and multinational corporations. Busch league, not surprisingly.

'busa

02-13-2013 11:19 AM

Quote:

Originally Posted by Act of God
(Post 15158086)

of course I read it, you said that there is an alleged effective rate of 12.1% which is the allegedly the lowest corporate tax rate in 40 years. I said it does not matter, as your article doesn't seem to compare effective rates of every other country.

Do you not see the two graphs in the same post?

Quote:

Originally Posted by Act of God
(Post 15158086)

Also, the article does not differentiate between effective rates for domestic and multinational corporations. Busch league, not surprisingly.

I'm sure you have those handy.

2000_328CI

02-13-2013 11:50 AM

Quote:

Originally Posted by evolved
(Post 15157997)

Gross generalization is gross. There are so many moving pieces to what happened and to blame it solely on the government is hilariously obtuse.

All Americans should own a home. It's the best form of investment and will lead to a prosperous America : Bill Clinton

The notion was to provide incentives to the banks in order to get them to open up loan requirements. The government ENTICED the market to lend to individuals who were underqualified. The banks would NEVER take on that level of risk without that support...